13 Key Facts the Channel Should Know About IoT

13 Key Facts the Channel Should Know About IoT

Forget the hype. The internet of things offers significant money-making opportunities for the channel.

Big Opportunities in IoT

The number of things connected to the Internet will reach 34.8 billion in 2016 and 50.1 billion by 2020, according to CompTIA. Total services spending for the IoT sector is expected to reach $235 billion by 2016, up 22 percent from 2015, according to Gartner.

IoT Initiatives Under Way

60% of end-user organizations have some type of IoT initiative under way. Funding will come from new budget allocation (45%), existing IT budget (36%), budget repurposed from cost savings (10%) and a combination of sources (7%).

Signs of Interest in IoT

Channel firms believe that 10% of their clients are heavily integrating IoT components, 23% are pursuing initial implementation of IoT components, 44% are in the early exploration and education stage, and 22% show no interest.

Gaining Traction in IoT

39% of channel firms report a significantly more positive view of IoT, 36% have a slightly more positive view and 21% have not changed their views, compared to one year ago.

IoT Money Makers in the Channel

A little more than a third (36%) of large channel firms are already making money from the IoT, compared with 15% of midsize channel companies and 15% of small channel companies. Looking ahead, 39%, 40% and 25%, respectively, expect to make money in the next 12 months.

Popular IoT Channel Offerings

The two most popular IoT channel offerings are consulting (40%) and security (36%) services. Others include analytics, managed services, custom apps, reselling and infrastructure services.

IoT Benefits for the Enterprise

49% of channel companies said the biggest use potential for IoT is creating new opportunities from connected systems, followed by controlling/monitoring equipment (48%), collecting new data (46%) and gathering contextual information about customers (43%).

The internet of things is more than just hype, and channel companies are already making money from the IoT. In a new survey, CompTIA finds that 23 percent of the U.S. channel companies polled have made money from IoT offerings, up sharply from 8 percent in 2015. Despite challenges, the channel is making progress monetizing the IoT, and they can do it by focusing on the benefits they expect, such as improved customer experience, better asset visibility/monitoring, cost savings/higher efficiency and new product/services revenue, according to the report. The market looks particularly promising in the small- and midsize-business (SMB) space where IoT projects can be too complex to handle internally, said CompTIA. In addition, the IoT leverages skills that solution providers already have. Currently, the two biggest IoT channel offerings are consulting and security. Here are key takeaways from the survey of 350 channel firms and 512 business and IT executives that show why finding ways to leverage the IoT is apt to prove profitable.